Friday, December 5, 2008

Well I am relieved. It has been my contention that Sheila Bair is the bull in the china shop. She confiscated Washington Mutual because it might cause a problem for her agency. There is little evidence that WaMu was illiquid or insolvent at the time – and indeed if the losses were only what JP Morgan has assumed then the bond holders (which she wiped out) would have received considerable value – probably par.

Some press indications are that Sheila Bair will be hard to remove. She is a statutory appointment after all – and her position will survive a change in government. And if she puts up a fight she will be even more destabilising.

3 comments:

Anonymous
said...

I don't remember the link where I read this but Countrywide decided to redo a couple of billion dollars worth of mortgages. Sleazebags that they are they are going to flow the adjustments to the actual holders of the mortgages and they take the hit and Countrywide looks like a compassionate company. The note holders are suing Countrywide, so Sheila threateneds them with an act of Congress if they tried to enforce their contract rights. She is something, God help us.

lol how about trying to be not as apparent when toting the Obama line? The only reason some people are against her now is because Obama's new cabinet crew don't see her as a 'team player' (i.e. she is calling them on a lot of their bullshit), so the search is on for an excuse to remove her from her position.

Let's forget that these financial institutions were in trouble long before she ever did anything with WaMu. I mean it had to be her fault Citi is a mess. Hell, maybe we can drum up someway to blame Lehman and Bear on her.

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